BMW Group has confirmed that it is developing BMW Plant Leipzig to produce an electric vehicle while also making additional investments in a number of facilities in Bavaria.

In a joint venture with SGL Carbon, SGL Automotive Fibers GmbH & Co KG, carbon fibre fabrics will be produced in Wackersdorf and processed to CFRP components for the new vehicle at BMW Plant Landshut.

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“The BMW Group will build the car of the future in Leipzig with high-tech innovations from Bavaria. The main reasons behind this decision are the qualities that Germany has to offer: we have a tried and tested production network here and high levels of education and outstanding competencies at our disposal,” said Norbert Reithofer, BMW’s chairman.

With the decision to produce in Leizpig, Landshut and Wackersdorf, the BMW Group is preparing for series production of a car known by its project name of Megacity Vehicle. BMW Group says that the Megacity project will be providing an innovative solution for sustainable mobility in urban environments.

It is being developed as part of ‘project i’ and is due to reach the market in the first half of this decade under a sub-brand of BMW.

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Last year BMW also said it has opted for SB LiMotive as the supplier of battery cells for the Megacity Vehicle. SB LiMotive is a 50:50 joint venture of Bosch and Samsung SDI.

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BMW says that the Megacity Vehicle will launch a family of extremely low-emission single and double-track vehicles. A step in this direction is the electric-powered Mini E which is being tested in extensive customer field trials in Germany, the United States and the U.K. as part of ‘project I’.

BMW’s Leipzig plant is currently building the BMW 1 Series three-door, 1 Series Coupé and 1 Series Convertible models, as well as the BMW X1.